30th Sep 2014 11:50
LONDON (Alliance News) - Iofina PLC said Tuesday that it had seen "record revenues and iodine production" in the first-half, although it did not meet its previous iodine production expectations, and posted a widened loss.
Iofina posted a pretax loss of USD1.2 million, widened from a loss of USD122,657 in the previous year, as revenue rose to USD13.0 million from USD11.6 million but this was offset by a jump up in administrative expenses.
The company produced 139.9 million metric tonnes of crystallised iodine during the half-year, up from 62.5 metric tonnes a year before.
Production was hampered due to fracking schedules, changes to the design of its IOsorb plants and longer than expected down time during a salt water disposal operator upgrade.
Its speciality chemical business saw revenue growth despite falling iodine prices; therefore, as the business is typically first-half weighted, Iofina expects its sales to be higher in the second-half.
The business said it expects to surpass its total revenue for 2013 in the first three quarters of 2014.
During 2014 iodine prices have continues to soften, and returned to levels akin to those before 2011, when there was a spike in prices as a result of the Japanese tsunami disaster and Chilean production issues. Market demand has continued to grow, however, in the LCD, pharmaceutical and X-ray contract media markets, said Iofina.
In the third quarter iodine prices have continued to see some downward pressure as iodine producer inventories are consumed, however, Iofina expects this pricing to stabilise in the near future.
Iofina expects to produce 325 to 350 metric tonnes of crystallised iodine in 2014.
Iofina said that, following the completion of its IO#6 plant and the focus of its new management team it is positioned to increase its iodine production levels, and reduce its costs.
Shares in Iofina were trading 13.3% higher at 48.70 pence per share Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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